System, Program Product, And Method For Debit Card And Checking Account Autodraw

ABSTRACT

A consumer is prequalified for a line of credit attached to a checking account by a lending institution computer responsive to consumer underwriting data. The lending institution computer makes available draws to the line of credit line in an authorization stream for a proposed payment from the checking account. When the line of credit is accessed, the checking account is credited with an additional value equal to one or more preselected loan increments so that the account then has a new amount totaling a previous amount plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or equals the value of a proposed payment. Next a new value for the line of credit balance available is determined, accounting for value credited to the checking account and a preselected loan advance fee for each loan increment credited to the account.

RELATED APPLICATIONS

This application claims priority to and the benefit of: U.S. ProvisionalPatent Application Ser. No. 61/042,612, by Ahlers et al., titled“System, Program Product, and Methods to AutoDraw for Micro-CreditAttached to a Prepaid Card” filed Apr. 4, 2008; U.S. Provisional PatentApplication Ser. No. 61/042,624, by Crowe et al., titled “System,Program Product, and Method to Authorize Draw for Retailer Optimization”filed on Apr. 4, 2008; and U.S. Provisional Patent Application Ser. No.61/082,863, by Ahlers et al, titled “System, Program Product, and Methodfor Debit Card and Checking Account AutoDraw” filed on Jul. 23, 2008,all of which are each incorporated herein by reference in theirentireties. This application also relates to: U.S. Provisional PatentApplication Ser. No. 61/016,213, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and Associated Methods”filed on Dec. 21, 2007; U.S. Provisional Patent Application Ser. No.61/052,454, by Sorbe et al., titled “Transfer Account Systems, ComputerProgram Products, and Methods to Prioritize Payments from PreselectedBank Account” filed May 12, 2008; U.S. Provisional Patent ApplicationSer. No. 61/029,975, by Sorbe et al., titled “Methods To Advance LoanProceeds On Prepaid Cards, Associated Systems and Computer ProgramProducts” filed on Feb. 20, 2008; U.S. Provisional Patent ApplicationSer. No. 61/042,012, by Ahlers et al., titled “System, Program Product,and Associated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on Apr. 4, 2008; U.S. Provisional Patent ApplicationSer. No. 61/032,750, by Ahlers et al., titled “Methods, Program Product,and System for Micro-Loan Management” filed on Feb. 29, 2008; U.S.Provisional Patent Application Ser. No. 61/060,559, by Galit et al.,titled “Methods, Program Product, and System to Enhance Banking TermsOver Time” filed on Jun. 11, 2008; U.S. Provisional Patent ApplicationSer. No. 61/082,863, by Ahlers et al., titled “System, Program Product,and Method For Debit Card and Checking Account Autodraw” filed on Jul.23, 2008; U.S. Provisional Patent Application Ser. No. 61/053,056, byGalit et al., titled “System, Program Product, and Method For Loading aLoan On a Pre-Paid Card” filed on May 14, 2008, all of which are eachincorporated herein by reference in their entireties. This applicationalso relates to: U.S. patent application Ser. No. 12/338,365, by Sorbeet al., titled “Transfer Account Systems, Computer Program Products, andAssociated Computer-Implemented Methods” filed on Dec. 18, 2008; U.S.patent application Ser. No. 12/338,402, by Sorbe et al., titled“Transfer Account Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,440, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,584, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and Computer-ImplementedMethods to Prioritize Payments from Preselected Bank Account” filed Dec.18, 2008; U.S. patent application Ser. No. 12/338,645, by Sorbe et al.,titled “Transfer Account Systems, Computer Program Products, andComputer-Implemented Methods to Prioritize Payments from PreselectedBank Account” filed Dec. 18, 2008; U.S. patent application Ser. No.12/389,749, by Sorbe et al., titled “Methods to Advance Loan Proceeds onPrepaid Cards, Associated Systems and Computer Program Products” filedon Feb. 20, 2009; PCT/US09/34692, by Sorbe et al., titled “Methods toAdvance Loan Proceeds on Prepaid Cards, Associated Systems and ComputerProgram Products” filed on Feb. 20, 2009; U.S. patent application Ser.No. ______, by Ahlers et al., titled “System, Program Product, andAssociated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on the same day herewith; U.S. patent applicationSer. No. ______, by Ahlers et al., titled “System, Program Product andAssociated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on the same day herewith; U.S. patent applicationSer. No. ______, by Crowe et al., titled “System, Program Product, andMethod to Authorize Draw for Retailer Optimization” filed on the sameday herewith; U.S. patent application Ser. No. 12/338,684, by Ahlers etal. titled “Computer-Implemented Methods, Program Product, and Systemfor Micro-Loan Management” filed on Dec. 18, 2008; PCT/US08/87660 byAhlers et al., titled “Computer-Implemented Methods, Program Product,and System for Micro-Loan Management” filed on Dec. 19, 2008; U.S.patent application Ser. No. 12/338,712, by Galit et al., titled“Computer-Implemented Methods, Program Product, and System to EnhanceBanking Terms Over Time” filed on Dec. 18, 2008; and PCT/US08/87689 byGalit et al., titled “Computer-Implemented Methods, Program Product, andSystem to Enhance Banking Terms Over Time” filed on Dec. 19, 2008, allof which are each incorporated herein by reference in their entireties.

BACKGROUND

1. Field of Invention

The present invention relates generally to the financial service andbanking product industries, and, more particularly, to systems, computerprogram products, and associated methods of providing an automaticcredit line draw in preselected increments for a checking account,including a checking account accessed through a debit card.

2. Background

It is known that tens of millions of consumers in the US have eitherlimited or no access to traditional credit, either as a result of pooror limited credit history. It is also recognized that non-traditionalshort-term lending, including, e.g., payday loans, payday advances, andother short-term cash advances, is a $20 billion plus per year industry.Non-traditional loans, however, involve the hassles of applying for andobtaining the loan prior to the consumer having access to the funds. Inaddition, inherent in requesting a loan is determining an amount of theloan. If the loan amount is too small, the consumer may need to obtainan additional loan, with additional fees; if the loan amount is toolarge, the consumer will needlessly pay extra interest.

It is further recognized that financial institutions earn an estimated$17 billion annually by charging overdraft fees to their checkingaccount customers. These fees are sometimes charged in ways that raiseconcerns among certain consumer protection groups For example, a $1overdraft can generate a $35 fee, and a consumer may not realize anoverdraft has taken place and would have preferred to not be charged afee rather than complete the transaction.

It is also known to use a debit card as payment for a proposed purchaseat a merchant. The consumer proposes a purchase and submits the debitcard to the merchant so that the merchant can request authorization froma bank associated with the debit card. That is, the merchant checks thatfunds are available in the checking account associated with the debitcard to cover the amount of the proposed purchase. This authorizationprocess also provides an opportunity for security services, such as, forexample, verifying of a Personal Identification Number (PIN) anddetermining if the card has been reported as stolen. If there areinsufficient funds available in the checking account associated with thedebit card to cover the amount of the proposed purchase, theauthorization request is denied by the bank, and the proposed purchaseis rejected by the merchant. Embarrassed and disappointed, many rejectedconsumers quickly give up and leave the merchants premises so that evenif a loan or credit were readily available with minimal effort, such as,for example, by placing a short phone call to the bank or anotherlending institution, the proposed purchase is abandoned.

It is further known that there are additional ways for consumers toaccess the funds in checking accounts in addition to debit cards,including, for example, checks, bill payment services, wire transfers,and other withdrawals. Because consumers can use one or all of thesetools to make payments from a checking account, each of these ways toaccess funds can trigger an overdraft.

SUMMARY OF INVENTION

In view of the foregoing, Applicants have recognized one or more sourcesof many of these problems and provides enhanced embodiments of methods,e.g., computerized methods, of advancing one or more preselected loanincrements to a checking account, e.g., a checking accessed with a debitcard, and associated systems and computer program products. A debit cardprovides an alternative payment method to cash or credit when makingpurchases. While having a similar look and feel to a credit card, adebit card functions more like writing a check as the funds aretypically withdrawn directly from the cardholder's bank account withoutthe payment of interest. As such, debit cards are also referred to ascheck cards. Also, a debit card is generally attached to a bank accountand acts as a means of accessing funds, or money, from the accountsimilar to an automated teller machine (ATM) card or as a means ofdirectly paying a merchant for the cost of purchases from the consumer'sbank account. A checking account, also known as, for example, a demandaccount, demand deposit account, negotiable order of withdrawal (NOW)account, or other similar account, is a bank account or deposit accountheld at a bank or other financial institution wherein the moneydeposited in the account is available on demand through various means,including checks, debit cards, bill payment services, check cards, wiretransfers, and others as understood by those skilled in the art.

Embodiments of the present invention provide, for example, acomputer-implemented method of accessing a line of credit associatedwith a checking account. Embodiments include the use of a debit card orother checking account spending device as understood by those skilled inthe art. The computer-implemented method can include a lendinginstitution computer prequalifying a consumer for a line of credit for achecking account responsive to consumer underwriting data andpredetermined qualification parameters to thereby convert consumerunderwriting data into line of credit data. The computer-implementedmethod can include making available draws to the line of credit line inan authorization stream for a proposed payment, including proposedpayments using a debit card or other checking account spending deviceand including proposed payments received by the lending institutioncomputer through the electronic communications network from a point ofsale terminal associated with a merchant. The line of credit has a totalloan value, a preselected loan increment, a preselected loan advance feeassociated with each preselected loan increment, and a line of creditbalance available. The total loan value represents a maximum amount ofvalue available to the consumer from the lending institution via a lineof credit associated with the checking account as understood by thoseskilled in the art. The computer-implemented method also includescrediting the checking account with an additional value equal to one ormore preselected loan increments so that the account then has a newamount totaling a previous amount of value in the account plus theamount of value of the one or more preselected loan increments and sothat the new amount exceeds or, alternatively, equals the value of theproposed transaction to thereby convert line of credit data into a valueassociated with the checking account to thereby fund the proposedpayment. The computer-implemented method further includes determining anew value for the line of credit balance available. The new value is aprevious value for the line of credit balance available minus the valuecredited to the checking account and minus fees, as each of the one ormore preselected loan increments credited to the checking accountgenerates a preselected loan advance fee.

By prequalifying the consumer for the line of credit and making draws tothe line of credit available in the authorization stream for a purchaseor a transaction, embodiments of the present invention advantageouslyallow a consumer to avoid the planning and hassle associated withdetermining the amount of a loan prior to proposing a purchase.Previously, a consumer would have to determine the amount of the loannecessary to fund the proposed purchase, then secure the loan, and onlythen propose the purchase at a merchant using, for example, a debitcard. If the information necessary to determine the amount of the loanexists only at the merchant, multiple trips to the merchant may berequired. Under the embodiments of the present invention, however,multiple trips are not required as the amount of the loan is determined,up to the total loan value, in the authorization stream for a proposedpayment, resulting in fewer rejections of proposed purchases, lessembarrassment for consumers, and reduced cost due to fewer abandonedsales as understood by those skilled in the art. Advantageously, underthe embodiments of the present invention, the consumer only pays forwhat is actually drawn.

By crediting the checking account in preselected loan increments,embodiments of the present invention advantageously can guarantee a feestructure that is proportional to the amount of credit accessed. Bycomparison, an overdraft fee charge by a bank for “bounced” check isoften larger than the overdraft amount. Instead, the fee structureaccording to embodiments of the present invention more closely resemblesan automated teller machine (ATM) fee from a consumer's point of view asunderstood by those skilled in the art. In addition, the use ofpreselected loan increments can often result in value remaining in thechecking account, allowing for small transactions without generatingadditional loan fees. For example, after of a credit of a preselectedloan increment of $50 and subsequent purchase transaction, the balancein the checking account ranges from $0.00 to $49.99.

According to other embodiments of the present invention, prequalifying aconsumer for a line of credit for a checking account, e.g., a checkingaccount associated with a debit card or other checking account paymentdevice, can include, for example, the consumer opting in to a programwith the lending institution using a written correspondence from theconsumer, a consumer selection on a website, a telephone conversationwith an interactive voice response unit, a telephone conversation with acustomer service representative, a mobile phone, or a combinationthereof as understood by those skilled in the art. That is, embodimentsof the present invention provide numerous flexible and convenient waysto initiate the prequalification process. A line of credit amount, forexample, can be established based on direct deposit and preselectedunderwriting formula, as understood by those skilled in the art, thatuse the amount of direct deposits, among other factors, to determine thesize of the credit line available.

According to other embodiments of the present invention, the amount ofvalue of the proposed purchase of the one or more items can includeadjustments for coupons, discounts; instant rebates, and sales tax, or acombination thereof as understood by those skilled in the art.

Embodiments of the present invention provide, for example, a system ofadvancing one or more preselected loan increments to a checking account,e.g., a checking account associated with a debit card. The systemincludes a lending institution computer positioned to manage a line ofcredit associated with a checking account, i.e., to control access tofunds from a line of credit associated with a checking account; aplurality of merchant computers positioned to determine an amount ofvalue of a proposed purchase of one or more items; and a plurality ofpoint-of-sale terminals, each associated with one or more merchantcomputers and in communication, through an electronic communicationsnetwork, with the lending institution computer. The system furtherincludes a computer program product associated with the lendinginstitution computer as discussed below.

Embodiments of the present invention provide, for example, a computerprogram product associated with the lending institution computer, storedon a tangible computer readable memory media, and operable on acomputer, the computer program product comprising a set of instructionsthat, when executed by the computer, cause the computer to performvarious operations. The operations include prequalifying a consumer fora line of credit for a checking account, e.g., a checking accountassociated with a debit card, by the lending institution responsive toconsumer underwriting data and predetermined qualification parameters tothereby convert consumer underwriting data into line of credit data. Theoperations include making available draws to the line of credit line inan authorization stream for a proposed payment, e.g., a proposedpurchase of one or more items using the debit card as payment. Theproposed payment can be, for example, received by the lendinginstitution computer through the electronic communications network froma point of sale terminal associated with a merchant. The operationsfurther include crediting the checking account with an additional valueequal to one or more preselected loan increments so that the accountthen has a new amount totaling a previous amount of value in the accountplus the amount of value of the one or more preselected loan incrementsand so that the new amount exceeds or, alternatively, equals the valueof a proposed purchase to thereby convert line of credit data into avalue associated with the checking account to thereby fund the proposedpayment. The operations also include determining a new value for theline of credit balance available, in which the new value is a previousvalue for the line of credit balance available minus a value equal tothe one or more preselected loan increments credited to the checkingaccount and minus a value equal to one or more preselected loan advancefees associated with each of the one or more preselected loan incrementscredited to the account.

Embodiments of the present invention, for example, include a pluralityof financial institutions interacting to provide various features andbenefits. For example, a first financial institution, e.g., a lendinginstitution, can offer lending services and provide the line of creditto the consumer, while a second financial institution can provide thechecking account and associated services to the consumer. Embodiments ofthe present invention include, for example, a gateway model between thelending institution and checking account institution, in which thechecking account institution notifies the lending institution for aparticular request for credit, allowing the lending institution to makethe decision for the particular request. In an alternate embodiment, thelending institution pushes line of credit information to the checkingaccount institution, allowing the checking account institution to makethe decision to extend credit for a particular transaction responsive tothe information from the lending institution so that the checkingaccount institution can grant authorization of a request in real time.In another embodiment, a file integration of the core bank systembetween the lending institution and the checking account institution canallow the checking account institution to make the decision to extendcredit for a particular transaction responsive to the information fromthe lending institution so that the checking account institution cangrant authorization of a request in real time. Similarly, a fileintegration of the core bank system between the lending institution andthe checking account institute can facilitate repayment of the line ofcredit and associated fees. Other repayment mechanisms can include, forexample, the routing or rerouting of direct deposits to the lendinginstitution, as well as scheduled or automatic repayments from thechecking account or yet another account. In addition, a loan processor,e.g., a third financial institution, acting on behalf or in service ofthe lending institution, can prequalify the consumer for the line ofcredit responsive to the lending institution's criteria. Theseembodiments promote flexibility and enable lending and financialinstitutions to partner with other lending and financial institutions,when appropriate, to maximize account options and line of credit optionsfor the consumer.

According to another embodiment of the present invention, the lendinginstitution can be a federally-chartered bank subject to federal bankinglaws and regulations and not subject to state banking laws andregulations. Also, the line of credit program can be a bank product sothat the line of credit program complies with federal Regulation Z.

Embodiments of the present invention also provide, for example, acomputer-implemented method of accessing a line of credit. Thecomputer-implemented method includes a lending institution computerprequalifying a consumer for a line of credit for a checking accountresponsive to consumer underwriting data and predetermined qualificationparameters to thereby convert consumer underwriting data into line ofcredit data. Draws to the line of credit line are made available in anauthorization stream for a proposed payment. The proposed payment caninvolve one or more of the following: a check, an electronic check, adebit card, an electronic bill payment, an automated teller machine(ATM) withdrawal, and a wire transfer. The proposed payment can be, forexample, received by the lending institution computer through theelectronic communications network from a point of sale terminalassociated with a merchant. The computer-implemented method alsoincludes crediting the checking account with an additional value equalto one or more preselected loan increments so that the account then hasa new amount totaling a previous amount of value in the account plus theamount of value of the one or more preselected loan increments and sothat the new amount exceeds or, alternatively, equals the value of theproposed payment to thereby convert line of credit data into a valueassociated with the checking account to thereby fund the proposedpayment. The method further includes determining a new value for theline of credit balance available. The new value is a previous value forthe line of credit balance available minus the value credited to theaccount and minus fees, as each of the one or more preselected loanincrements credited to the account generates a preselected loan advancefee.

In addition, embodiments of the present invention include systems,program products, and associated methods of advancing one or morepreselected loan increments to a checking account, e.g., a checkingaccount associated with a debit card, and accessing a line of creditwith a debit card or other checking account spending device, as will beunderstood by those skilled in the art.

BRIEF DESCRIPTION OF DRAWINGS

So that the manner in which the features and benefits of the invention,as well as others which will become apparent, may be understood in moredetail, a more particular description of the invention brieflysummarized above may be had by reference to the embodiments thereofwhich are illustrated in the appended drawings, which form a part ofthis specification. It is also to be noted, however, that the drawingsillustrate only various embodiments of the invention and are thereforenot to be considered limiting of the invention's scope as it may includeother effective embodiments as well.

FIG. 1A is a schematic flow diagram of a method of accessing a line ofcredit with a debit card according to an embodiment of the presentinvention;

FIG. 1B is a schematic flow diagram of a method of accessing a line ofcredit according to an embodiment of the present invention;

FIG. 2 is a schematic flow diagram of a consumer transaction accordingto an embodiment of the present invention;

FIG. 3 is a schematic block diagram of a system of advancing one or morepreselected loan increments to a checking account according to anembodiment of the present invention;

FIG. 4 is a partial schematic diagram of a computer program productaccording to an embodiment of the present invention;

FIG. 5A is a schematic diagram of a line of credit flow according toembodiments of the present invention;

FIG. 5B is a schematic diagram of a line of credit flow according toother embodiments of the present invention;

FIG. 6 is a schematic front elevational view of an embodiment of anaccess interface of a program product and system in the form of agraphical user interface of a display of a computer according to anembodiment of the present invention;

FIG. 7 is a schematic diagram of a payroll processor system according toan embodiment of the present invention;

FIG. 8 is a schematic diagram of a program product according to anembodiment of the present invention;

FIG. 9A is a schematic diagram of a gatekeeper model according toembodiments of the present invention;

FIG. 9B is a schematic diagram of a model with pushed line of creditinformation according to embodiments of the present invention;

FIG. 9C is a schematic diagram of a core banking system integrationaccording to embodiments of the present invention;

FIGS. 10A and 10B are respective front and back plan views of a prepaidcard according to an embodiment of the present invention; and

FIG. 11 is a front plan view of a display screen of a computerdisplaying an excerpt of an account activity statement according to anembodiment of the present invention.

DETAILED DESCRIPTION

The present invention will now be described more fully hereinafter withreference to the accompanying drawings, which illustrate embodiments ofthe invention. This invention may, however, be embodied in manydifferent forms and should not be construed as limited to theillustrated embodiments set forth herein; rather, these embodiments areprovided so that this disclosure will be thorough and complete, and willfully convey the scope of the invention to those skilled in the art.Like numbers refer to like elements throughout.

As illustrated in FIG. 1A, embodiments of the present invention includea method, e.g., a computerized method, of accessing a line of creditwith a debit card 100. The method includes prequalifying a consumer fora line of credit for a checking account associated with a debit card bya lending institution 103 responsive to consumer underwriting data andpredetermined qualification parameters to thereby convert consumerunderwriting data into line of credit data. The line of credit has atotal loan value, a preselected loan increment, a preselected loanadvance fee associated with each preselected loan increment, and a lineof credit balance available. The method also includes making availabledraws to the line of credit line in an authorization stream for aproposed purchase of one or more items using the debit card as paymentwhen an amount of value of the proposed purchase of the one or moreitems is greater than an amount of value in the checking account 105.The proposed purchase data is received by the lending institutioncomputer through the electronic communications network from a point ofsale terminal associated with a merchant. The method further includescrediting the checking account with an additional value equal to one ormore preselected loan increments so that the account then has a newamount totaling a previous amount of value in the account plus theamount of value of the one or more preselected loan increments and sothat the new amount exceeds or, alternatively, equals the value of aproposed purchase 107 to thereby convert line of credit data into avalue associated with the checking account to thereby fund the proposedpayment. The method also includes determining a new value for the lineof credit balance available, the new value being a previous value forthe line of credit balance available minus a value equal to the one ormore preselected loan increments credited to the checking account andminus a value equal to one or more preselected loan advance feesassociated with each of the one or more preselected loan incrementscredited to the account 109.

As illustrated in FIG. 1B, embodiments of the present invention alsoprovide, for example, a method of accessing a line of credit 150. Themethod includes a lending institution prequalifying a consumer for aline of credit for a checking account 153 responsive to consumerunderwriting data and predetermined qualification parameters to therebyconvert consumer underwriting data into line of credit data. Draws tothe line of credit line are made available in an authorization streamfor a proposed payment 155. The proposed payment can involve one or moreof the following: a check, an electronic check, a debit card, anelectronic bill payment, an automated teller machine (ATM) withdrawal,and a wire transfer. The proposed payment data can be, for example,received by the lending institution computer through the electroniccommunications network from a point of sale terminal associated with amerchant. The method also includes crediting the checking account withan additional value equal to one or more preselected loan increments sothat the account then has a new amount totaling a previous amount ofvalue in the account plus the amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of the proposed payment 157 to therebyconvert line of credit data into a value associated with the checkingaccount to thereby find the proposed payment. The method furtherincludes determining a new value for the line of credit balanceavailable 159. The new value is a previous value for the line of creditbalance available minus the value credited to the account and minusfees, as each of the one or more preselected loan increments credited tothe account generates a preselected loan advance fee. That is,embodiments of the method convert line of credit data into a valueassociated with a checking account so that the value associated with thechecking account is exchanged for goods.

The flow of a consumer transaction according to an embodiment of thepresent invention, as illustrated in FIG. 2, can include, for example,determining the available balance of the checking account 203. If thereis an insufficient balance in the checking account to complete thetransaction, the available line of credit balance available isdetermined 205. If the checking account balance and line of creditbalance available are sufficient to complete the transaction, thetransaction is approved 207. Next, the checking account is credited inpreselected loan increments so that the checking account never goesnegative 209. Then a new line of credit balance is determined 211.

As understood by those skilled in the art, by prequalifying the consumerfor the line of credit and making draws to the line of credit availablein the authorization stream for a purchase using a debit card or otherpayment card as payment, embodiments of the present inventionadvantageously allow a consumer to avoid the planning and hassleassociated with determining the amount of a loan prior to proposing apurchase. Previously, a consumer would have to determine the amount ofthe loan necessary to fund the proposed purchase, then secure the loan,and only then propose the purchase at a merchant using the debit card.If the information necessary to determine the amount of the loan existsonly at the merchant, multiple trips to the merchant may be required.Under the embodiments of the present invention, however, multiple tripsare not required as the amount of the loan is determined, up to thetotal loan value, in the authorization stream for a proposed purchase,e.g., using the debit card as payment, resulting in fewer rejections ofproposed purchases, less embarrassment for consumers, and reduced costdue to fewer abandoned sales as understood by those skilled in the art.Advantageously, under the embodiments of the present invention, theconsumer only pays for what is actually drawn.

According to other embodiments of the present invention, the amount ofvalue of proposed purchase of the one or more items can include, forexample, coupons, discounts, instant rebates, sales tax, or acombination thereof as understood by those skilled in the art.

According to other embodiments of the present invention, prequalifying aconsumer for a line of credit for a checking account or other account,e.g., an account associated with a debit card or other spending device,can include, for example, the consumer opting in to a program with thelending institution using a written correspondence from the consumer, aconsumer selection on a website, a telephone conversation with aninteractive voice response unit (IVRU), a telephone conversation with acustomer service representative, a mobile phone, or a combinationthereof as understood by those skilled in the art. That is, embodimentsof the present invention provide numerous flexible and convenient waysto initiate the prequalification process. When launched as an accessiblewebsite, for example, the website can provide various software basedprogram product segments, as will be understood by those skilled in theart, from which bank products are accessible or downloadable. Thewebsite preferably includes secure site pages or portions, as understoodby those skilled in the art, as financial and personal data on or forconsumers may be provided by a consumer. As described herein, thewebsite in an exemplary embodiment includes account managementcapabilities as understood by those skilled in the art to enhancequalification of consumers and tracking of consumer usage data orhistory. By including this feature, embodiments of other programproducts, methods, and systems can be enhanced and provided.

Embodiments of the present invention can provide, for example, that thelending institution comprises a first financial institution associatedwith the line of credit, and that the checking account is associatedwith a second financial institution so that a first financialinstitution can offer line of credit services for checking accountsassociated with a second financial institution. In addition, embodimentsof the present invention, for example, include the lending institutioncomprising a first lending institution and methods, operations, orinstructions including associating the line of credit with a secondchecking account, or other account, at a second lending institution anddecrementing a designated direct deposit from the second checkingaccount, or other account, of the second lending institution forrepayment of at least portions of the line of credit. That is,embodiments of the present invention provide for a debit card, or otherpayment card, to be associated with an account at one bank and thedirect deposits used for repayment to be directed to an account at adifferent bank. These embodiments promote flexibility and enable lendinginstitutions to partner with other lending institutions, whenappropriate, to maximize account options and line of credit options forthe consumer. Other embodiments include repayment through a fileintegration between the lending institution and institution that holdsthe checking accounts, rather than direct deposit rerouting, asunderstood by those skilled in the art.

A line of credit amount, for example, can be established responsive todirect deposit data and preselected underwriting formulas, as understoodby those skilled in the art, that use the amount of direct deposits,among other factors, to determine the size of the credit line available.In an embodiment of the present invention involving prequalifying aconsumer for a line of credit from a bank or other lending institution,the lending institution can require or define, for example, thefollowing initial qualification parameters for a consumer: (1) consumershould provide employment and wage verification through a direct deposithistory; (2) consumer should authorize bank initiated withdrawals fromtheir account; and (3) consumer should have a history of at least oneelectronic deposit. In addition, the following on-going criteria, forexample, should be met: (1) consumer's account should be in goodstanding, not overdrawn, cancelled, or in default of the customeragreement; and (2) consumer should continue to initiate electronicdeposits to the account. The bank or lending institution, for example,may elect to make the account ineligible for a line of credit if anelectronic deposit ceases. The bank can have a dedicated program managerqualify, approve, or authorize a consumer or can use program productstored in memory to make sure the criteria or parameters are satisfiedor meet certain thresholds as selected by the bank or lendinginstitution. The lending institution computer can prequalify a consumerresponsive to underwriting data, including consumer underwriting dataand initial qualification parameters, on-going criteria, consumerpersonal and financial data, and other factors as understood by thoseskilled in art.

For example, as illustrated in FIG. 5A, a consumer 501 can request aline of credit through an IVRU or a computer 511 as part of a system500. The consumer 501 can use the computer to register at a websiteusing a program product according to embodiments of the presentinvention and launched from a server, e.g., at a loan processor,underwriting organization, bank, lending institution, other financialinstitution, payroll processing company, or other entity which canprovide the line of credit product, among others, as will be understoodby those skilled in the art. The form or qualification parameters can beconsistent with one or more underwriting organizations or institutionsor set/defined by the bank or lending institution. As understood bythose skilled in the art, a loan, micro-loan, repayment line of credit,or other type of payment processor, such as provided by First DataCorporation, Total Systems Services, Inc., Fidelity NationalInformation, Inc., or as custom developed by a bank, a financialinstitution, or other organization, operates to provide a customerinterface on a line of credit or micro-loan request (see, e.g., accessinterface 600 of FIG. 6 in the form of a computer display having agraphical user interface) and determines and decides whether a potentialor existing customer qualifies for a line of credit product. First DataCorporation, formerly First Data Resources, is a transaction processingcompany, including prepaid cards, and is headquartered in GreenwoodVillage, Colo., as understood by those skilled in the art. Withheadquarters located in Columbus, Ga., Total System Services, Inc.provides electronic payment services to financial institutions andcompanies, including consumer-finance, credit, debit, healthcare,loyalty, prepaid, chip and mobile payments, as understood by thoseskilled in the art. Headquartered in Jacksonville, Fla., FidelityNational Information, Inc. provides core processing for financialinstitutions, including card issuer, transaction processing, andoutsourcing services to financial institutions and retailers, asunderstood by those skilled in the art. The line of credit or loanprocessor 321, 503 for example, can be outsourced by a lendinginstitution, e.g., a bank, if desired, and numerous different loanprocessors (see, e.g., FIG. 5A with loan processor 503 havingunderwriting analyzer and interface software 502, for example) orentities that handle this function can be used as well (see also, e.g.,FIG. 3 with computer server 321 handling the payment processor andinterface access roles for consumer lines of credit 319, for example).When the loan processor prequalifies the consumer 513, the credentialscan be passed to a lending institution computer 307, e.g., a computerassociated with a bank or other financial institution 507 or otherorganization, and then a flag, code, notation, or other identifier canbe associated with a consumer's profile in a database 309 so that whenthe consumer desires to access the line of credit, e.g., through aconsumer purchase transaction using the debit card or payment card, theprocess acknowledges the identifier to then allow incrementalmicro-loans on the line of credit to be granted as described herein.

Once prequalified, for example, a consumer 501 can then present, forexample, a debit or payment card for payment in transaction 515 with amerchant 505. The merchant 505, for example, can then requestauthorization 517 from the lending institution 507 associated with thedebit or payment card. Within the authorization stream for thetransaction, the lending institution 507 through a computer programproduct described herein, including a loan advance and fee manager 504,can credit the consumer account 506 in preselected loan increments fromthe line of credit 519. The lending institution 507 can then grantauthorization for the payment 521. The merchant exchanges products,including goods and/or services, for payment 523. The consumer providesfor the repayment of the loan and fees, typically through direct deposit525 (see also, e.g., FIG. 7).

Embodiments of the present invention, for example, as illustrated inFIG. 5B, include a plurality of financial institutions interacting asunderstood by those skilled in the art. For example, a first financialinstitution, e.g., a lending institution 508, can offer lending servicesand provide the line of credit to the consumer, while a second financialinstitution 509 can provide the checking account 506 and associatedservices to the consumer. Embodiments of the present invention, forexample, provide variations on the line of credit messaging 518 betweenthe checking account institution 509 and the lending institution 508 asunderstood by those skilled in the art. In embodiments of a gatewaymodel between the lending institution and checking account institution,for example, the checking account institution 509 notifies the lendinginstitution 508 for a particular request for credit 517 as part of theline of credit messaging 518, allowing the lending institution to makethe decision for the particular request so that the checking accountinstitution can grant authorization of a request 521. As furtherillustrated in FIG. 9A, the checking account institution 509 receivesthe authorization request 517 and, if access to the line of credit isneeded to complete the purchase or transaction, requests credit 901 fromthe lending institution 508. The checking account institution only thengrants authorization responsive to the lending institution 903. In analternate embodiment, as further illustrated in FIG. 9B, the lendinginstitution 508 pushes line of credit information 905 to the checkingaccount institution 509 (as part of the line of credit messaging 518 inFIG. 5B), allowing the checking account institution to make the decisionto extend credit for a particular transaction responsive to theinformation from the lending institution so that the checking accountinstitution can grant authorization of a request in real time 907. Inanother embodiment, as illustrated in FIG. 9C a file integration 909 ofthe core bank system of the lending institution 902 and the core bankingsystem of the checking account institution 904 can allow the checkingaccount institution 509 to make the decision to extend credit for aparticular transaction responsive to the information from the lendinginstitution so that the checking account institution can grantauthorization of a request in real time 911. Core banking system refersto an integrated bank platform, including software and hardware,providing common banking functionality, including, for example, newaccount and transaction processing, document management and imaging,secure online banking, business intelligence, risk management, businessanalytics, and integrated workflow. Similarly, repayment of the line ofcredit and associated fees can be achieved through a file integration ofthe core bank system between the lending institution and the checkingaccount institution, as shown in 529 and 518, or through the reroutingof direct deposits to the lending institution, as shown at 527.According to one embodiment of the present invention, part of a consumerrequest for a line of credit 511 involves the consumer agreeing to routedirect deposits to the lending institution 508 and authorize loan andfee repayment from the direct deposits, as shown in 527. Surplus fundscan be credited to the consumer's checking account 506 immediatelythereafter. Alternately, direct deposit funds can continue to bedirected to the consumer's checking account 506, as shown in 529.Through such embodiments, a lending financial institution can provideservices to another, e.g., non-lending, financial institution as areplacement for its overdraft product by connecting to the core banksystem of the institutions.

The following example illustrates an embodiment of the presentinvention. See also FIG. 11. A consumer initiates engagement through aphone call with a customer service representative and receives approvalby the lending institution for a line of credit for a checking accountassociated with a debit card with preselected loan increments of $20with a $2.50 fee per increment. The consumer proposes to purchase itemswith a value of $42, but only has an account balance of $21. Theconsumer, however, also has $60 available on the line of credit, with anoutstanding balance of $0. When the consumer proposes the purchase, theamount of value of the proposed purchase is determined to be $42 (asthis example assumes no coupons, discounts, instant rebates, or salestax for illustrative purposes). The amount of value in the account isdetermined to be $21. Then the difference is determined to be $21. Next,two (2) preselected increments of $20 each, for a total value of $40,are credited to the checking account so that the account then has a newamount, in this example $61, totaling the amount previously in theaccount ($21) plus the one or more preselected loan increments (2×$20$40) and so that the new amount exceeds or, alternatively, equals thevalue of the proposed purchase ($61>$42). The purchase is transacted,and the account balance after the purchase is $19 ($61−$42=$19). Theloan fee is determined to be $5 (2×$2.50=$5). The line of credit balanceoutstanding is now $45, which is calculated as the previous balance ($0)plus the value of the preselected increments credited to the account($40) and the value of the loan fee ($5). Therefore, there remains $15available on the line of credit ($60-2×$20−2×$2.50 $15).

In other embodiments of the present invention, the lending institutioncan make available only a part of the preauthorized total loan valueavailable for crediting to the account, responsive to a consumerdetermination, so that the consumer retains maximum control. Forexample, the consumer determines to make available only $75 of thepreauthorized total loan value, of say $200. The amount of value of theproposed purchase is determined to be $98; the amount of value in theaccount is determined to be $20; and the difference is determined to be$78. Because the difference is greater than the amount available forcrediting to the account, authorization for the proposed purchase isdenied, and the proposed purchase is rejected. Alternatively, thelending institution can establish a limit for the draw that is lowerthan the overall balance available.

As understood by those skilled in the art, by crediting the consumer'saccount only in preselected loan increments, embodiments of the presentinvention advantageously can guarantee a fee structure that isproportional to the amount of credit accessed. By comparison, anoverdraft fee charge by a bank for “bounced” check is often by largerthan the overdraft amount. Instead, the fee structure according toembodiments of the present invention more closely resembles an automatedteller machine (ATM) fee. In addition, the use of preselected loanincrements can often result in value remaining in the account, allowingfor small transactions without generating additional loan fees. Forexample, after of a credit of a preselected loan increment of $50 andsubsequent purchase transaction, the balance in the account ranges from$0.00 to $49.99.

According to another embodiment of the present invention, the financialinstitution can be a federally-chartered bank subject to federal bankinglaws and regulations and not subject to state banking laws andregulations. Therefore, the federally-chartered financial institutionenjoys rate preemption; that is, state licensing requirements, as wellas regulations in many states that limit lending interest rates, arepreempted and do not apply to the federally-chartered financialinstitution. As understood by those skilled in the art, afederally-chartered financial institution can operate in every statewith a consistent implementation nationally rather than a state-by-stateapproach, can provide the line of credit as a bank product so that theline of credit complies with federal Regulation Z, and can charge anyloan or interest rate without regard to state law.

According to another embodiment of the present invention, the lendinginstitution can adjust the preauthorized total loan value and repaymentterms based on the performance of the consumer. That is, a consumer withgood repayment history can typically earn access to a larger line ofcredit. See also FIG. 11.

As illustrated in FIG. 3, embodiments of the present invention include asystem of advancing one or more preselected loan increments to achecking account, e.g., a checking or other consumer account associatedwith a debit card. The system 300 includes a first computer associatedwith a lending institution defining a lending institution computer 307.The lending institution computer 307 can include, for example,input-output I/O devices 306A; one or more processors 306B; memory 306C,such as, computer readable media; and a display 306D. The memory 306C ofthe lending institution computer 307 can include a computer programproduct 400 as described herein and can include, for example, one ormore databases containing account data files 309. The lendinginstitution computer 307 is positioned to manage a line of creditassociated with a checking account or other consumer account, i.e., tocontrol access to funds from a line of credit associated with theaccount. The system 300 also includes a plurality of second computersassociated with a plurality of merchants 317 defining a plurality ofmerchant computers 313. Each merchant computer 313 can include, forexample, input-output I/O devices 314A; one or more processors 314B; andmemory 314C, such as, computer readable media. Each merchant computer313 is positioned to determine an amount of value of a proposed purchaseof one or more items. The system 300 further includes a plurality ofpoint-of-sale terminals 315, each associated with one or more ofmerchant computers 313 and in communication, through an electroniccommunications network 311, with the lending institution computer 307.Each point-of-sale terminal 315 has a processor defining an acquiringprocessor and can be in communication with a merchant computer 313.Debit card data can be read by swiping the card through a slot 310C pasta reading head of a point-of-sale terminal 315. The point-of-saleterminal 315 can also include a display 310A and input/output (I/O)devices 310B, e.g., a keypad. The system 300 further includes a computerprogram product associated with the lending institution computer 307,stored on a tangible computer readable memory media, and operable on acomputer, the computer program product comprising a set of instructionsthat, when executed by the computer, cause the computer to performvarious operations as discussed herein.

In other embodiments of the present invention, the system can include,for example, a plurality of consumer access interface devices 301, e.g.,computers, each having memory 304C, to communicate through an electroniccommunications network 311 with the lending institution computer 307and, for example, a line of credit loan processor 321, to initiate theprequalification process. Each customer computer 301 can include, forexample, input-output I/O devices 304A; one or more processors 304B;memory 304C, such as, computer readable media; and a display 304D. Thememory 304C of the customer computer 301 can include an Internet browser304E, a computer application used for accessing sites or information ona network, as understood by those skilled in the art.

As illustrated in FIG. 4, embodiments of the present invention include acomputer program product 400 associated with the lending institutioncomputer 401, stored on a tangible computer readable memory media 403,and operable on a computer, the computer program product 400 comprisinga set of instructions 405 that, when executed by the computer, cause thecomputer to perform various operations. The operations includeprequalifying a consumer for a line of credit for a checking account,e.g., a checking account associated with a debit card, by the lendinginstitution 407 responsive to consumer underwriting data andpredetermined qualification parameters to thereby convert consumerunderwriting data into line of credit data. The line of credit has atotal loan value, a preselected loan increment, a preselected loanadvance fee associated with each preselected loan increment, and a lineof credit balance available. The operations also include makingavailable draws to the line of credit line in an authorization streamfor a proposed purchase of one or more items using the debit card aspayment when an amount of value of the proposed purchase of the one ormore items is greater than an amount of value in the checking account409. The proposed purchase, for example, can be received by the lendinginstitution computer through the electronic communications network froma point of sale terminal associated with a merchant. The operationsfurther include crediting the checking account with an additional valueequal to one or more preselected loan increments so that the accountthen has a new amount totaling a previous amount of value in the accountplus the amount of value of the one or more preselected loan incrementsand so that the new amount exceeds or, alternatively, equals the valueof a proposed purchase 411 to thereby convert line of credit data into avalue associated with the checking account to thereby fund the proposedpayment. The operations also include determining a new value for theline of credit balance available, in which the new value is a previousvalue for the line of credit balance available minus a value equal tothe one or more preselected loan increments credited to the checkingaccount and minus a value equal to one or more preselected loan advancefees associated with each of the one or more preselected loan incrementscredited to the account 413.

In other embodiments of the present invention, rather than crediting theconsumer account in preselected loan increments with each incrementassociated with a preselected loan advance fee, the account can becredited with a draw for an exact amount of purchase at a defined rate.In such embodiment, a standard consumer draw on the line of credit couldbe in $40 increments, but when an auto-draw is initiated by a purchaseat a point of sale or an automated teller machine (ATM) withdrawal, theexact amount of funds needed to be borrowed will be advanced. As aresult, for example, the fee amount assessed for a $40 draw might be$5.00, while if the amount borrowed on an auto-draw is only $20 the feewould be assessed ratably and would be $2.50 for the borrowing.

Embodiments of the present invention can, for example, include repaymentof at least portions of the line of credit responsive to a subsequentdirect deposit received for the consumer's benefit by the bank so thatthe repayment of the at least portions of the line of credit is deductedfrom the subsequent direct deposit. That is, loans made under a line ofcredit can be repaid out of the proceeds of a direct deposit. Recurringdirect deposits include, for example, employer payroll funds, federal orstate government electronic benefits payments, annuities, dividends,interest payments, lottery winnings, royalty payments, and other streamsof payments as understood by one skilled in the art.

Embodiments of systems, program products, and methods of the presentinvention can include, for example, for substantially all programs ifdesired, features such as any repayment of draws on the line of creditcan be automatically collected from the next electronic depositregardless of payment source. As payments are received, fees also can bepaid first then the payment applied to the oldest outstanding drawamount. When payments are received, total available line limit isrestored by the payment amount. If funds from the electronic deposit arenot sufficient to cover the outstanding balance, a partial repayment canbe made in the full amount of the electronic deposit resulting in anunpaid balance in the account. Repayment of the remaining unpaid balancecan be taken from subsequent electronic deposits until the line has beenpaid in full. Other cash equivalent repayment options also can beaccepted and processed by a line of credit processor as understood bythose skilled in the art.

It will also be understood by those skilled in the art that embodimentsof the line of credit product or program product, for example, can beassociated with a payroll processing company that processes directdeposits (see, e.g., FIG. 7). Embodiments of the program product andmethods can be added to product or service offerings by the payrollprocessing company 701 so that it can be offered to their customersindependent of bank by taking money or funds out at the source, e.g., asthe payroll file is prepared 703 and before the direct deposit is evenoriginated, or credited to the checking account, for example. Theseembodiments can also allow the processing company 701 to have moredirect information on employment history. A payroll processing company701 can also use a loan processing system 707, loan processor, or otherpayment processor either within their facilities or as an outsourcingentity to allow the provision of enrolling and providing consumerpayroll information 705 and for tracking and reconciling repayment orupdated consumer payroll information with repayments pulled 709. Thepayroll can be sent, loaded or processed by a payroll processor 711 forACH transmittal, check generation, or account transfer, for example(see, e.g., FIG. 7). These embodiments of the present invention, forexample, can include loan repayment occurring from direct deposit fundsprior to or relatively instantaneously with the direct deposit fundsbeing made available in the consumer's account. An example of and moredetails on how repayment can be accomplished is illustrated in U.S.Provisional Patent Application Ser. No. 61/016,213 titled “TransferAccount Systems, Computer Program Products, and Associated Methods”filed on Dec. 21, 2007 which is incorporated herein by reference in itsentirety.

Additionally, along these lines, any repayment of a line supersedesrepayment of a negative balance for an account due to settlementtransactions that cause the account to go negative. Any monies remainingafter a payment is received can be credited to the account. If paymenttakes the account balance to $0, any transactions attempted with thedebit card, or other payment card, can be declined. Those transactionscan be subject to any related decline fees. Repayment of a draw, forexample, should not generally be taken from funds in an account. Thatis, if an account balance is positive prior to a draw, only when thenext electronic deposit is initiated to the account will repayment betriggered. If a draw is not paid within the preselected time period,preferably days, e.g., 35 day timeframe, any amount owed can be takenfrom the principal balance in the consumer's account.

Embodiments of the present invention provide, for example, a programproduct 800 associated with a bank or other financial or lendinginstitution implemented in modules or components, as illustrated in FIG.8. An underwriting analyzer and interface component 801 of a lendinginstitution program product 800 can receive underwriting information,e.g., data, and make the determination whether to offer a line of creditor other product to the consumer as understood by those skilled in theart. That is, an underwriting analyzer and interface component 801 canrespond to a consumer initiated engagement and can determine whether toprequalify the consumer for a line of credit to thereby convertunderwriting data into line of credit data. Underwriting data caninclude a direct deposit history 812; a withdrawal authorization orapproval 813, from an enrollment in a line of credit program; a historyof at least one electronic deposit 814; an account being in goodstanding, not overdrawn, cancelled, or in default 815; continued directdeposit 816; and other data as understood by those skilled in the art.In addition, a loan advance and fee manager module 803 deals withdetermining whether to advance funds 821, providing loans in preselectedincrements 822, calculating available credit 823, managing repayments824, and other associated tasks as understood by those skilled in theart. Other architectures and organizations will be understood by thoseskilled in the art to be included within the embodiments of the presentinvention. Program products can be implemented in a variety of softwareand programming languages, including without limitation hypertext markuplanguage (“HTML”), Java, C, C++, XML, and others as understood by thoseskilled in the art.

As illustrated in FIGS. 10A, 10B, and 3, embodiments of the presentinvention can include, for example, a debit card 950, or payment card,or check card, or other account access card, and a point-of-saleterminal device 315, e.g., a card reader. As understood by those skilledin the art, a payment card, e.g., a debit card, can have indicia 952,e.g., logos, slogans, source identifiers, of a sponsoring bank and of aprepaid card processor; a serial number 954; and expiration date 956.The structures of various types of specific cards, e.g., magnetic stripe958, type of material, are well known to those skilled in the art andcan be used with embodiments of the present invention. Typically, a card950 is formed from plastic and has a magnetic stripe 958 affixed to theplastic through an application of heat. Those skilled in the art willunderstand that other embodiments besides a magnetic stripe can includeradio frequency identification devices (RFID), smart chips, bar codes,and other similar devices. Embodiments of the present invention caninclude forming cards or receiving cards already formed. The magneticstripe card 950 can store information, or data, e.g., accountinformation, by modifying the magnetism of particles on the magneticstripe 958 on the card. The information can be read by swiping the cardthrough a slot 310C past a reading head of a card reader device 315,e.g., point-of-sale hardware. The point-of-sale terminal 315 can includea display 310A and input/output (I/O) devices 310B, e.g., a keypad.Typically, there are two tracks of information on a magnetic card 950used for financial transactions, known as tracks 1 and 2. In addition, athird track, known as track 3, can be available for magnetic stripecards. Tracks 1 and 3, if available, are typically recorded at 210 bitsper inch, while track 2 typically has a recording density of 75 bits perinch. Track 2, as typically encoded, was developed by the AmericanBankers Association (ABA) provides for 37 numeric data characters,including up to 19 digits for a primary account number (including a BankIdentification Number as understood by those skilled in the art), anexpiration date, a service code, and discretionary verification data,such as, a Personal Identification Number, or PIN. The information,e.g., data, on the card can be used, for example, to facilitate atransaction, For example, when the card 950 is swiped through a slot310C, the data on the magnetic stripe 958 is read and processed by thepoint-of-sale terminal 315, converting data stored in the magneticparticles on the card into data associated with readers 315 and alending institution computer 307. The point-of-sale terminal 315 canthen communicate through an electronic communications network 311 to,for example, a lending institution computer 307. The point-of-saleterminal 315, e.g., card reader, communicates the account information,e.g., data, as read from the card, as well as other data, such as, anamount of a proposed transaction for approval from the merchant computer313. The other data, for example, can be entered by merchant personnel(e.g., an amount of the transaction), the consumer (e.g., a PIN, orsecurity code), or bank personnel (e.g., a security approval). Thelending institution computer 307 can then utilize the accountinformation and other data to authorize or reject a purchase by, forexample, determining whether a proposed purchase by the consumer is lessthan an amount of funds remaining on the card. Moreover, optionalsecurity measures, including, for example, a mismatch between a PINsupplied by the consumer and a PIN stored on the card 950 or in adatabase 309, can result in the rejection of a proposed transaction. Thelending institution computer 307 then perform certain functions,including responding to the authorization request so that apoint-of-sale displays an indication of approval or rejection, resultingin a visual depiction to a merchant of the approval or rejection of theproposed transaction. Also, the lending institution computer 307 can,for example, write data to a database 309 to record a purchase or othertransaction (including advancing a loan from the line of credit), todebit available funds from an account associated with the card 950, andto credit directly or indirectly a merchant for a purchase. In additionto purchase authorization, embodiments of the present invention also caninclude customer inquiries into recent transactions or a balanceinquiry, i.e., an amount of remaining value associated with the checkingaccount.

As illustrated in FIG. 11, embodiments of the present invention include,for example, providing data associated with a checking account or debitcard as a visual representation of account activity. Embodiments includedisplaying an account activity statement, including a purchase, on adisplay device to thereby provide a visual representation of a valueassociated with the checking account being exchanged for goods. Forexample, a customer computer 301, through an Internet Browser 304E, (seeFIG. 3) can display on a display 304D an account activity statement 612for a customer-specific account 613, or set of accounts, with eachtransaction including, for example, a date 614A, a description 614B, aamount credited to the account 614C, an amount debited from the account614D, a resulting balance 614E, a line of credit amount available 614F,and a line of credit outstanding balance 614G, or other such data asunderstood by those skilled in the art. For example, the visualrepresentation can include a balance inquiry 615A. For example, thevisual representation can include crediting the checking account with anadditional value equal to one or more preselected loan increments sothat the account then has a new amount totaling a previous amount ofvalue in the account plus the amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of the proposed payment 615B. Forexample, the visual representation can include a purchase of goods 615C,wherein data associated with a debit card representing an amount ofvalue in a checking account is modified in an exchange for products,including goods or services. In addition, the visual representation caninclude a direct deposit 615D and also a loan repayment from directdeposit funds relatively instantaneously (or prior to) with the directdeposit funds being made available in the consumer's account 615E. Inother embodiments, crediting the checking account with an additionalvalue 615B and an associated purchase of goods 615C can be representedas a single transaction; likewise, the direct deposit 615D and anassociated loan repayment 615E can be represented as a singletransaction. In addition, the visual representation can include anincrease in a total loan value 615F, i.e., an amount available from theline of credit, responsive to consumer performance data.

A person having ordinary skill in the art will recognize that varioustypes of memory are readable by a computer such as described herein,e.g., lending institution, line of credit processors, payroll processor,or other computers with embodiments of the present invention. Examplesof computer readable media include but are not limited to: nonvolatile,hard-coded type media such as read only memories (ROMs), CD-ROMs, andDVD-ROMs, or erasable, electrically programmable read only memories(EEPROMs), recordable type media such as floppy disks, hard disk drives,CD-R/RWs, DVD-RAMs, DVD-R/RWs, DVD+R/RWs, flash drives, memory sticks,and other newer types of memories, and transmission type media such asdigital and analog communication links. For example, such media caninclude operating instructions, as well as instructions related to thesystem and the method steps described above and can operate on acomputer. It will be understood by those skilled in the art that suchmedia can be at other locations instead of or in addition to the lendinginstitution computer to store program products, e.g., includingsoftware, thereon.

This application claims priority to and the benefit of: U.S. ProvisionalPatent Application Ser. No. 61/042,612, by Ablers et al., titled“System, Program Product, and Methods to AutoDraw for Micro-CreditAttached to a Prepaid Card” filed Apr. 4, 2008; U.S. Provisional PatentApplication Ser. No. 61/042,624, by Crowe et al., titled “System,Program Product, and Method to Authorize Draw for Retailer Optimization”filed on Apr. 4, 2008; and U.S. Provisional Patent Application Ser. No.61/082,863, by Ahlers et al., titled “System, Program Product, andMethod for Debit Card and Checking Account AutoDraw” filed on Jul. 23,2008, all of which are each incorporated herein by reference in theirentireties. This application also relates to: U.S. Provisional PatentApplication Ser. No. 61/016,213, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and Associated Methods”filed on Dec. 21, 2007; U.S. Provisional Patent Application Ser. No.61/052,454, by Sorbe et al., titled “Transfer Account Systems, ComputerProgram Products, and Methods to Prioritize Payments from PreselectedBank Account” filed May 12, 2008; U.S. Provisional Patent ApplicationSer. No. 61/029,975, by Sorbe et al., titled “Methods To Advance LoanProceeds On Prepaid Cards, Associated Systems and Computer ProgramProducts” filed on Feb. 20, 2008; U.S. Provisional Patent ApplicationSer. No. 61/042,012, by Ahlers et al., titled “System, Program Product,and Associated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on Apr. 4, 2008; U.S. Provisional Patent ApplicationSer. No. 61/032,750, by Ahlers et al., titled “Methods, Program Product,and System for Micro-Loan Management” filed on Feb. 29, 2008; U.S.Provisional Patent Application Ser. No. 61/060,559, by Galit et al.,titled “Methods, Program Product, and System to Enhance Banking TermsOver Time” filed on Jun. 11, 2008; U.S. Provisional Patent ApplicationSer. No. 61/082,863, by Ahlers et al., titled “System, Program Product,and Method For Debit Card and Checking Account Autodraw” filed on Jul.23, 2008; U.S. Provisional Patent Application Ser. No. 61/053,056, byGalit et al., titled “System, Program Product, and Method For Loading aLoan On a Pre-Paid Card” filed on May 14, 2008, all of which are eachincorporated herein by reference in their entireties. This applicationalso relates to: U.S. patent application Ser. No. 12/338,365, by Sorbeet al., titled “Transfer Account Systems, Computer Program Products, andAssociated Computer-Implemented Methods” filed on Dec. 18, 2008; U.S.patent application Ser. No. 12/338,402, by Sorbe et al., titled“Transfer Account Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,440, by Sorbe et-al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,584, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and Computer-ImplementedMethods to Prioritize Payments from Preselected Bank Account” filed Dec.18, 2008; U.S. patent application Ser. No. 12/338,645, by Sorbe et al.,titled “Transfer Account Systems, Computer Program Products, andComputer-Implemented Methods to Prioritize Payments from PreselectedBank Account” filed Dec. 18, 2008; U.S. patent application Ser. No.12/389,749, by Sorbe et al., titled “Methods to Advance Loan Proceeds onPrepaid Cards, Associated Systems and Computer Program Products” filedon Feb. 20, 2009; PCT/US09/34692, by Sorbe et al., titled “Methods toAdvance Loan Proceeds on Prepaid Cards, Associated Systems and ComputerProgram Products” filed on Feb. 20, 2009; U.S. patent application Ser.No. ______, by Ahlers et al., titled “System, Program Product, andAssociated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on the same day herewith; U.S. patent applicationSer. No. ______, by Ahlers et al., titled “System, Program Product, andAssociated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on the same day herewith; U.S. patent applicationSer. No. ______, by Crowe et al., titled “System, Program Product, andMethod to Authorize Draw for Retailer Optimization” filed on the sameday herewith; U.S. patent application Ser. No. 12/338,684, by Ahlers etal., titled “Computer-Implemented Methods, Program Product, and Systemfor Micro-Loan Management” filed on Dec. 18, 2008; PCT/US08/87660 byAhlers et al., titled “Computer-Implemented Methods, Program Product,and System for Micro-Loan Management” filed on Dec. 19, 2008; U.S.patent application Ser. No. 12/338,712, by Galit et al., titled“Computer-Implemented Methods, Program Product, and System to EnhanceBanking Terms Over Time” filed on Dec. 18, 2008; and PCT/US08/87689 byGalit et al., titled “Computer-Implemented Methods, Program Product, andSystem to Enhance Banking Terms Over Time” filed on Dec. 19, 2008, allof which are each incorporated herein by reference in their entireties.

Many modifications and other embodiments of the invention will come tothe mind of one skilled in the art having the benefit of the teachingspresented in the foregoing descriptions and the associated drawings.Therefore, it is to be understood that the invention is not to belimited to the illustrated embodiments disclosed, and that modificationsand other embodiments are intended to be included within the scope ofthe appended claims.

1. A system for accessing a line of credit, the system comprising: acomputer associated with a lending institution defining a lendinginstitution computer, the lending institution computer having memory,being associated with an electronic communications network, and beingpositioned to control access to funds from a line of credit associatedwith a checking account; and a computer program product associated withthe lending institution computer, stored on a tangible computer memorymedia, and operable on a computer, the computer program productcomprising a set of instructions that, when executed by the computer,cause the computer to perform the operations of: prequalifying aconsumer for a line of credit associated with a checking account by thelending institution computer responsive to consumer underwriting dataand predetermined qualification parameters to thereby convert consumerunderwriting data into line of credit data, the line of credit having atotal loan value, a preselected loan increment, a preselected loanadvance fee associated with each preselected loan increment, and a lineof credit balance available, making available draws to the line ofcredit in an authorization stream for a proposed payment when an amountof value of the proposed payment is greater than an amount of value inthe checking account, the proposed payment being received by the lendinginstitution computer through the electronic communications network froma point of sale terminal associated with a merchant, crediting thechecking account with an additional value equal to one or morepreselected loan increments so that the checking account then has a newamount totaling a previous amount of value in the account plus an amountof value of the one or more preselected loan increments and so that thenew amount exceeds or, alternatively, equals the value of the proposedpayment to thereby convert line of credit data into a value associatedwith the checking account to thereby fund the proposed payment, anddetermining a new value for the line of credit balance available, thenew value being a previous value for the line of credit balanceavailable minus a value equal to the one or more preselected loanincrements credited to the checking account and minus a value equal toone or more preselected loan advance fees associated with each of theone or more preselected loan increments credited to the account.
 2. Asystem of claim 1, wherein the proposed payment involves one or more ofthe following: an electronic check, a debit card, an electronic billpayment, an automated teller machine (ATM) withdrawal, and a wiretransfer.
 3. A system of claim 2, wherein the lending institutioncomprises a first financial institution, the first financial institutionbeing associated with the line of credit, and wherein the checkingaccount is associated with a second financial institution so that afirst financial institution can offer line of credit services for achecking account associated with a second financial institution.
 4. Asystem of claim 3, wherein the lending institution computer associatedwith the first financial institution pushes credit balance informationto a second computer associated with the second financial institution sothat the second financial institution computer can make a determinationregarding the line of credit for a proposed payment in real time.
 5. Asystem of claim 3, wherein a core banking system of the first financialinstitution is integrated into a core banking system of the secondfinancial institution so that a second computer associated with thesecond financial institution can make a determination regarding the lineof credit for a proposed payment in real time.
 6. A system of claim 1,wherein the operation of making available draws to the line of credit inan authorization stream for a proposed payment includes making availableonly a part of the preauthorized total loan value available, responsiveto a consumer determination, so that the consumer retains maximumcontrol; wherein the operation of prequalifying a consumer for a line ofcredit associated with a checking account by a lending institutioncomputer includes the consumer opting in to a program with the lendinginstitution using one or more of the following: a written correspondencefrom the consumer, a consumer selection on a website, a telephoneconversation with an interactive voice response unit, a telephoneconversation with a customer service representative, and a mobile phone;wherein the lending institution is a federally-chartered bank subject tofederal banking laws and regulations and not subject to state bankinglaws and regulations; wherein the line of credit is a bank product sothat the line of credit complies with federal Regulation Z; and whereinthe lending institution computer is further positioned to adjust theprequalified total loan value and repayment terms responsive to consumerperformance data.
 7. A computer program product associated with acomputer associated with a lending institution computer defining alending institution computer, stored on a tangible computer memorymedia, and operable on a computer, the computer program productcomprising a set of instructions that, when executed by the computer,cause the computer to perform the operations of: prequalifying aconsumer for a line of credit associated with a checking account by thelending institution computer responsive to consumer underwriting dataand predetermined qualification parameters to thereby convert consumerunderwriting data into line of credit data, the line of credit having atotal loan value, a preselected loan increment, a preselected loanadvance fee associated with each preselected loan increment, and a lineof credit balance available; making available draws to the line ofcredit in an authorization stream for a proposed payment when an amountof value of the proposed payment is greater than an amount of value inthe checking account; crediting the checking account with an additionalvalue equal to one or more preselected loan increments so that thechecking account then has a new amount totaling a previous amount ofvalue in the account plus an amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of the proposed payment to therebyconvert line of credit data into a value associated with the checkingaccount to thereby fund the proposed payment; and determining a newvalue for the line of credit balance available, the new value being aprevious value for the line of credit balance available minus a valueequal to the one or more preselected loan increments credited to thechecking account and minus a value equal to one or more preselected loanadvance fees associated with each of the one or more preselected loanincrements credited to the account.
 8. A computer program product ofclaim 7, wherein the proposed payment involves one or more of thefollowing: a check, an electronic check, a debit card, an electronicbill payment, an automated teller machine (ATM) withdrawal, and a wiretransfer.
 9. A computer program product of claim 8, wherein the lendinginstitution comprises a first financial institution, the first financialinstitution being associated with the line of credit, and wherein thechecking account is associated with a second financial institution sothat a first financial institution can offer line of credit services fora checking account associated with a second financial institution.
 10. Acomputer program product of claim 9, wherein the lending institutioncomputer associated with the first financial institution pushes creditbalance information to a second computer associated with the secondfinancial institution so that the second financial institution computercan make a determination regarding the line of credit for a proposedpayment in real time.
 11. A computer program product of claim 9, whereina core banking system of the first financial institution is integratedinto a core banking system of the second financial institution so that asecond computer associated with the second financial institution canmake a determination regarding the line of credit for a proposed paymentin real time.
 12. A computer program product of claim 7, wherein loanrepayment occurs from direct deposit funds prior to or relativelyinstantaneously with the direct deposit funds being made available inthe checking account.
 13. A computer program product of claim 7, whereinthe operations further include associating the line of credit with apayroll processing entity.
 14. A computer-implemented method ofaccessing a line of credit, the method comprising: prequalifying aconsumer for a line of credit associated with a checking account by alending institution computer responsive to consumer underwriting dataand predetermined qualification parameters to thereby convert consumerunderwriting data into line of credit data, the line of credit having atotal loan value, a preselected loan increment, a preselected loanadvance fee associated with each preselected loan increment, and a lineof credit balance available; making available draws to the line ofcredit in an authorization stream for a proposed payment when an amountof value of the proposed payment is greater than an amount of value inthe checking account; crediting the checking account with an additionalvalue equal to one or more preselected loan increments so that thechecking account then has a new amount totaling a previous amount ofvalue in the account plus the amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of the proposed payment to therebyconvert line of credit data into a value associated with the checkingaccount to thereby fund the proposed payment; and determining a newvalue for the line of credit balance available, the new value being aprevious value for the line of credit balance available minus a valueequal to the one or more preselected loan increments credited to theaccount and minus a value equal to one or more preselected loan advancefees associated with each of the one or more preselected loan incrementscredited to the account.
 15. A computer-implemented method of claim 14,wherein the proposed payment involves one or more of the following: acheck, an electronic check, a debit card, an electronic bill payment, anautomated teller machine (ATM) withdrawal, and a wire transfer.
 16. Acomputer-implemented method of claim 15, wherein the lending institutioncomprises a first financial institution, the first financial institutionbeing associated with the line of credit, and wherein the checkingaccount is associated with a second financial institution so that afirst financial institution can offer line of credit services for achecking account associated with a second financial institution.
 17. Acomputer-implemented method of claim 16, wherein the lending institutioncomputer associated with the first financial institution pushes creditbalance information to a second computer associated with the secondfinancial institution so that the second financial institution computercan make a determination regarding the line of credit for a proposedpayment in real time.
 18. A computer-implemented method of claim 16,wherein a core banking system of the first financial institution isintegrated into a core banking system of the second financialinstitution so that a second computer associated with the secondfinancial institution can make a determination regarding the line ofcredit for a proposed payment in real time.
 19. A computer-implementedmethod of claim 14, wherein the proposed payment is payment for apurchase of goods; and the computer-implemented method further includesdisplaying an account activity statement, including a purchase, on adisplay device to thereby provide a visual representation of a valueassociated with the checking account being exchanged for goods.
 20. Acomputer-implemented method of claim 14, wherein the proposed paymentinvolves a debit card, and the computer-implemented method furtherincludes receiving data by the lending institution computer from a cardreader device associated with a point of sale terminal responsive to thecard reader device reading data from the debit card and modifying thedata to include point of sale data to communicate with the lendinginstitution computer.